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News Release

Auckland

New premium student accommodation will ease demand


 

 

Grey Lynn office unit decked out for summer/new-zealand/en-gb/news/864/grey-lynn-office-unit-decked-out-for-summerAucklandGrey Lynn office unit decked out for summer
East Tamaki gem with new five-year lease/new-zealand/en-gb/news/863/east-tamaki-gem-with-new-five-year-leaseAucklandEast Tamaki gem with new five-year lease

​With a rapid rise of international student numbers into Auckland over the past ten years and a perennial scarcity of high-quality purpose built student accommodation; the sale of two of Auckland’s premier student accommodation facilities present an excellent opportunity for investors to gain a significant foothold in the Auckland institutional property market and exposure to this emerging global asset class.
Two high-quality student accommodation developments located in the hub of Auckland’s education precinct at 5 Whitaker Place and 121 Grafton Road are on offer and to be sold as a portfolio or as individual assets. This international expression of interest campaign is being run by property consultants JLL on behalf of urban lifestyle property developers Tasman Cook, and closes Friday the 24th of April 2015.
Jointly running this campaign is Conal Newland, National Director of Student Accommodation Services for JLL Australia alongside Andrew Brown, Investment Sales Director for JLL New Zealand. The construction works of these two developments has commenced with completion expected end of this year to allow the students to move in at the start of the 2016 academic year. 
“At present, there is a very limited supply of high-quality purpose-built student accommodation in and around Auckland’s CBD,” says Andrew Brown. “The student accommodation that does exist is predominately of very modest quality and provides limited operational services or pastoral care for students.”
The influx of foreign students arriving into Auckland over the last ten years has driven up demand for purpose-built student accommodation. The volume of student arrivals into New Zealand, mainly driven to Auckland, has jumped from 15,398 in 2013 to 22,863 in 2014, a 48% year on year increase according to Statistics New Zealand and these numbers are expected to continue to grow.
Brown continues, “The major source of international students to Auckland is Asian countries. Students coming from these large cities in Asia Pacific are accustomed with living in high-quality, space efficient apartments, near or adjacent to their university. These newly constructed premium student residences will be an ideal accommodation solution for young people who have grown up in densely populated urban environments.”
Conal Newland a student accommodation specialist says there is currently a gap in the supply of accommodation to students for good quality purpose built accommodation that is professionally managed. “These developments are finally meeting that acute need in the market and will have a positive effect in alleviating the shortage.” Conal, who has been involved in numerous successful student accommodation developments in Australia and the UK, says “the design of these accommodation facilities with extensive communal areas will enhance the quality of purpose built accommodation in Auckland. Both are located within easy walking distance of the Universities allowing student tenant’s easy access to academic facilities and amenities in the CBD.”
Whitaker Place, known for its student accommodation, is located in proximity to both the University of Auckland and Auckland University of Technology (AUT); the two major tertiary educational providers in Auckland, thus creating a focal point for student activity and amenities.
Previously a five storey commercial office building, the 5 Whitaker Place facility will provide 300 studio apartments. Communal facilities will include a lounge, study, kitchen, dining room, games room, theatre and a gym together with basement car parking. The building will be diamond shaped with two lifts and a stairwell situated to the centre of the building, with the bedrooms to the perimeter. Bedrooms in the elevated levels will provide views over the CBD and towards Rangitoto Island.
The Grafton Crossing development is located opposite a hall of residence occupied by the University of Auckland, in proximity to Auckland Hospital, Starship Children’s Hospital and the University of Auckland Grafton Campus, home to the Faculty of Medical and Health Sciences. The University of Auckland City Campus and AUT’s city campus are located a short distance via the Grafton bridge and provide strong demand for accommodation in the area.
“In the long-term, Grafton Crossing will take advantage of the mixed use campus that is planned for the 5.2ha former Lion Breweries site in Newmarket, which enhances the strategic appeal of the location and is expected to be attended by several thousands of students,” says Brown.
Previously the Auckland Grafton Oaks Hotel, the new Grafton Crossing student accommodation development will provide 395 studio apartments with views over the Hauraki Gulf and Rangitoto Island. The building will be U-shaped with communal lounge, study, kitchen, gym with a café on the ground floor. The main lounge will have bi-folding doors providing access to a secure central court yard which will include landscaped spaces and BBQ facilities. There will also be two retail units for lease fronting Grafton Road plus a courtyard cafe. 
Both of these high quality purpose built student accommodation facilities will be professional managed by UniLodge, who are the market leaders in the operation and management of student accommodation in both Australia and New Zealand, which will ensure a safe and secure environment for the students.
Newland continues, “Student accommodation is a new emerging asset class within New Zealand, attracting an increasing amount of investment appetite from both within New Zealand and from overseas investors who are seeking to explore early investment into the student accommodation market.”

The strong and growing demand for student accommodation primarily from overseas students has attracted new entrants into the sector and experienced global investors have recognised the importance of Australia and New Zealand as solid growth markets.